Comparative study of renewable energy policies between Ecuador and Germany. Shifting from FITs to Auctions

Policy measures are essential tools for the transition from fossil fuels to renewable energy sources in the electricity generation. Feed-in tariffs (FITs) are the most used policy for support of renewable technologies globally. Nevertheless, Ecuador phased-out FITs in 2016 and adopted auctions in 2015. Ecuador’s implementation of auctions reflects an approach with little relation to practices in other countries and without a technology-specific design. On the other hand, Germany demonstrates a long trajectory in policy-making with vast experience in FITs. Moreover, in 2017 Germany adopted auctions as the official policy to support renewable projects with a scope larger than 750 kW. However, FITs are still in use and complement auctions.
This thesis analyses and compares the country-specific contexts where these policies are implemented through the lens of a multi-level perspective framework. As a result, the most important success factors in Germany have been identified: long-term planning, institutional continuity, legislative stability and principally an actively participating society, which is environmentally aware. Obstacles for the transition in Ecuador are institutional discontinuity, legislative inconsistency, the lack of long-term planning and absence of society as actors of the transition. Due to Germany’s pioneering role plus the successful growth of renewable sources during the last twenty years, their policy implementations appear desirable to adopt in other contexts. Therefore, a prospective transferability of the auction policy from Germany to Ecuador is additionally analyzed.